US Services PMI dipping into Contraction - Equities continue to reject Highs

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Consecutive misses on US data in the North-American Morning Session as the US Services PMI came in at 49.9 vs 52 expected.

Equity markets which rallied back after the miss on ADP Data, gapped right back down as Services Data, which has been holding strong throughout Hike cycles and geopolitical certainty is now showing weakness.

New Orders, deliveries, production and Employment are contracting while prices are increasing at the highest pace since November 2022.

Markets are not pleased with this news as we start to see a shift in PMI data, tariffs are starting to have an impact.

Stock Indices are turning red and the US Dollar takes a toll as the consecutive data misses blocks a third consecutive risk-on session.

The day is not over as the Bank of Canada held rates at 2.75% for the second time, and the Press conference is coming up right now.

You can access this morning's data report here.

USDCAD and USDJPY Intra-day Charts

USDCAD 30m Chart

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USDCAD 30M Chart, June 4, 2025. Source: TradingView

USDCAD is making new lows after the BoC stays put and US Data misses, there isn't much support before the Higher Timeframe Support Zone (1.3560 to 1.36) except for an oversold RSI.

BoC Governor Macklem is speaking live here.

USDJPY 30m Chart

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USDJPY 30M Chart, June 4, 2025. Source: TradingView

USDJPY broke through the immediate pivot zone at 143.400 to 143.530 with decent selling momentum.

RSI is also oversold though the situation is similar to the USDCAD.

Safe Trades!

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